GOLDEN RULES FOR TRADERS
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GOLDEN RULES FOR TRADERS

1) DO NOT OVER TRADE & NOT MAKE HURRY TO BOOK PROFIT.
If your trading capacity is Rs.1,00,000 -Trade only for Rs.50,000- Do not trade for Rs.2,00,000.- do not over trade. We advise not hurry to book profit when market is in your favor - wait for the right time.

2) Trade IN DIFFERENT SECTORS.
Do not put your all capital in one sector divide your capital in different sector.Trade in 2 to 4 Stocks at a time with strict Stop.

3) TRADE WITH TREND
Do not be afraid to buy at high prices and sell at low prices. -Do not buy just because it is a low price & do not sell because it is high. Buy when there is bad news and Sell when there is good news.

4) DO NOT EXPECT PROFIT ON EVERY DAY.
If you consider you are a smart trader who can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it may because you double losses.

5) WITHDRAW PORTION OF YOUR PROFIT.
It is must that trader must take a portion of the profit and put it in separate account. This is absolutely must for long term stability in the market.

6) AVOID TRADING IF YOU ARE NOT CLEAR
NSE & BSE will never close, every morning at 9.55a.m. ( 5 days in a week) it will open. So do not try to be a millionaire in a day. It is next to impossible to earn money every day in stock market.

7) IF YOU WILL AVOID STOP -LOSS, NEXT DAY MARKET WILL AVOID YOU. (FOR TRADING WITHOUT CAPITAL)
Do not average out in our share tips when market is not in favour. Limit your losses by keeping a stop loss order - Never cancel a stop loss order after you have placed it, otherwise you may loose more.

8) TRADE ONLY IN HIGH VOLEME STOCK ( FNO STOCKS)
In low volume stocks the spread is too high and chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.

9) SELL SHORT AS OFTEN AS YOU LONG.
Remember that if you are caught in a SHORT SELL POSITION, high chances are that it will give back in less than a month. But if you are caught in a LONG POSITION it takes much more time to build (Sometimes we have to wait for 2- 3 years for our buying prices.)If you consider 10 different reasons affecting the market (nse & bse)- on an average, 7 reasons are for bearish trend & only 3 reasons for bullish trend. Hence be cautious in taking a long position.

10) RUMOURS CAN RUIN YOU PLEASE DON'T FOLLOW THEM.
RUMOURS CAN RUIN YOU PLEASE DON'T FOLLOW THEM or ‘Rumors’ is part of your strategy. Believe in Charts, act on Charts. There is no second best option.

11) DO NOT FORGET TO ADJUST DAILY EXPENSES.
Do not forget expenses like Brokerage, telephone & Mobile bills, Internet charges, computer maintenance, etc. in the profits.

 

ADVANTAGE OF INTRADAY Trading (Day Trading)

1) you will have to pay less Brokerage.
2) Everyday you can do fresh trading according to the market trend because everyday market trend is different.
3) After stock market closing, nobody can predict next day's market opening.
4) There is no need to pay any carry forward margin.
5) In intraday you can trade good volume with low risk. Hence chances of earning more are higher.

 

 

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DISCLAIMER

This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained in this article are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writer of the blog may be trading in, or have positions in the securities mentioned in the articles. Blog author does not accept any liability arising out of use of the above information/article. Intra-day call are of high risk as they are based on instant market movement. If the money and risk is not managed correctly, then traders and short term investors can land up in losses. We are not responsible for any losses that can occur due to volatility and stop loss violation. We do not have any personal positions any time on the recommendation made for the intra-day calls. However, it is possible that our Live Market Calls subscriber's could have positions and trading positions without our knowlege and consent. We also dont have any control on our client reverse positions if they have created against our recommendtion. Individual traders, implementers of the trading call are doing it at their own risk. We also dont have any control on our subscriber's positions. Traders are advised to check their cost in long and short trades and keep taking profits irrespective of our targets. What matter is trading profits therefore check cost and keep taking profits. Reproduction in whole or in part without written permission is prohibited.